LKS | in Focus

LAKSHMIKUMARAN & SRIDHARAN MARCH, 2021

LKS | In Focus

FARM TO FOOD: KEY TRENDS AND REGULATORY OUTLOOK IN AGRITECH

INDIRECT TAX

9. Parotta or roti? Curd or yogurt? Classifying culinary delights under the Indian GST regime 2 | LKS - IN FOCUS / MARCH 2021

INDIRECT TAX Parotta or roti? Curd or yogurt? Classifying culinary delights under the Indian GST regime

L. Badri Narayanan and Asish Philip Abraham

What’s in a name? That which we call a rose by any other name would smell as sweet.

| William Shakespeare, Romeo & Juliet (Act II, Scene I) |

Well, in the Indian GST regime, everything lies in the name. Last year, an Indian start-up approached the ARTICLE IN FOCUS Authority for Advance Rulings (AAR) in India to determine GST & CLASSIFICATION the applicable rate of tax on “Whole Wheat Parotta and HSN Classification of a food product Malabar Parotta” - two popular Indian breads. The is important for determining the applicant contended that parotta is a type of roti and was GST rate. GST rate impacts pricing classifiable under a category of bread covering “khakhra, decisions of the product and legal declarations on the package. plain chapatti or roti” attracting a rate of 5%. The AAR Apart from additional tax lability, rejected the contention- it ruled that it was not roti (taxed interest and penal consequences, incorrect classification can affect at 5%) and that it was taxable at 18% as no specific entry the entire forward supply chain with covered the product and in its view roti and parotta are contractual disputes with customers. different. This is not a one-off case and in the area of food, the complications of classification are most pronounced. The multiple GST rates and exemptions make it imperative to determine product classification before the launch of a In July 2017, India moved from an erstwhile indirect tax product. regime covering excise, Valued Added Tax (VAT), entry Factors impacting classification of food tax and other local indirect taxes to a unified Goods and products: Services Tax (GST). Giving credit where it is due, the GST regime had several positive impacts. It allowed credit to • Trade parlance be seamless across borders, reduced the number of taxes • Branding and marketing to be complied with, boosted logistics and brought the entire country on a single platform. In a country like India • Flavoring agents with its complex federal structure, the implementation of GST has been note-worthy. But among the various • Technical and dictionary meaning compromises that needed to be made in order to roll- out GST, one of them was that India put in place one of • Allied laws the most complex classification structures for its goods and services. India adopted multiple slab-based GST rates • Packaging (Nil,1,3,5,12,18 and 28) for various products with highest

standard rate of 28% along with compensation cess. Most countries have either a single rate or two rates structure (standard rate and concessional rate) for their GST regimes. The complex multi-rate GST structure puts pressure on Indian businesses to focus on nomenclature, branding and the technical nature of the goods and services it supplies, in order to get the right rate.

In the area of food and produce, the issue of classification is most stark. The Indian GST classification structure is based on a global system of nomenclature and classification called the Harmonised System of Nomenclature (HSN) developed by the World Customs Organisation (WCO). The HSN is a highly scientific system of classification and for most industrial products it provides clear and certain entry for classification. Even for food and produce items, the HSN provides a clear system of classification. However, Indian culinary products and innovations are not specifically covered and the Indian GST regime has added entries that are in addition and sometimes in variance to the HSN. It is here that confusion regarding classification arises.

At the same time, the changing culinary preferences of millennials have presented a huge business opportunity for innovation in the sector. Llifestyle changes in favour of packaged, canned/ frozen, ready-to-eat, ready to cook or pre-packaged food items have provided impetus for food entrepreneurs to set up shop in India. Changes can be seen across the farm to fork value chain. There has been a paradigm shift from the unorganised sector to branded food operators and chains in India. The introduction of new flavoring agents, proprietary food from fusion of cuisines, health supplements bridging the nutrition gap, and, innovations in food preservation and packing has posed a unique challenge in the taxation regime.

With this background, we wanted to illustrate some of the current issues that the food and beverage business is facing to highlight the challenges classification poses for businesses as relates to GST. These are real issues and from our experience classification can have a huge impact on the survival of the business itself. In the food and beverage areas, the following are important examples:

• Applicability of GST exemption in relation to curd and yogurt. The scientific meaning of the product has a crucial role in determining the GST rate. The issue is compounded by healthy and vegan alternatives with flavoring agents.

• Applicability of Compensation Cess on carbonated fruit beverages. The importance of allied laws such as regulations issued by Food Safety and Standards Authority of India (FSSAI) and the trade parlance test in determining the correct classification. Carbonated fruit beverages qualifying as a ‘fruit juice based drink’ to attract concessional GST rate is highly litigated by the department.

• The meaning of ‘bread’ under HSN and its applicability to various Indian breads namely roti, chapatti, paratha, thepla, naan, kulcha, etc. Making this even more complicated are new categories of the bread-family of products such as: frozen, ready-to-eat, ready to cook packages are introduced.

• Branded products attract higher GST rates. The usage of proprietary marks,

standardisation of packing materials, sale from branded retail chains, etc. pose unique challenges in applying the GST rate in the forward supply chain.

• The flavoring agent and its impact on classification of products. In trade parlance test, the influence these agents have on consumer behavior is critical to the classification and in availing concessional rates. Further, marketing and product positioning also impact the perception and ultimately the classification of a product.

Issues based on technical meaning of a product

Curd or yogurt and GST exemption

A wide variety of fermented milk-based products are available namely, curd, yogurt, artisanal curd. The products are marketed as fermented dairy product, lactose-free curd with added probiotics and flavoring agents. The health benefits of such products are highlighted. In general, the ingredients of these products include pasteurised toned milk, milk solids, enzymes, active probiotic cultures, active live cultures and minimal lactose.

Curd and yogurt are both types of fermented milk products but there are two different GST rates for classifying fermented dairy products and hence a confusion as to the applicable rates.

11 2 3

Merely looking at the table above, it is clear that whether a product is classifiable as ‘curd’ or as “yogurt or other fermented or acidified milk and cream” can have significant Don’t cry over spilled milk. By this time tomorrow, it’ll be free curd. GST implications. As with all classification matters, before With right cultures, you might considering the description, the classification under HSN also get some yogurt. needs to be determined (in terms of column 2 of the above table). The explanatory notes to the HSN clarifies that

Chapter Heading No. 04.03 of Custom Tariff Act, 1975 (CTA) DID YOU KNOW covers buttermilk and all fermented or acidified milk. The fermented dairy product manufactured from milk will be ‘Curd’ is made of starter probiotic classified under Chapter Heading 04.03. Therefore, clearly cultures such as Lactobacillus acidophilus, Streptococcus lactis, etc. and yogurt both yogurt and curd fall under Chapter Heading 0403. has other active live cultures such as The Indian GST notification, however, goes a step further S. thermophilus, L. bacillus delbrueckii subsp. Bulgaricus, L. bacillus delbrueckii and creates a sub classification for Curd with NIL rate of subsp, lactis, L. occus lactis subsp. Lactis, GST. It is hereafter that various rules and laws relating to L. coccus lactis subsp. Cremoris., etc. classification come into play.

In India, the curd/dahi is a daily use product of the common man. Generally, consumers consume various kinds of ‘curd/ dahi’ and ‘yogurt’ is also used as a substitute for curd. The classifications in such matters can be resolved through the robust route of technical differences between the product or by means of a simpler common parlance understanding of the products. The technical literature of ‘curd’ and ‘yogurt’4, distinguishes curd as made of starter probiotic cultures such as Lactobacillus acidophilus, Streptococcus lactis, etc. and yogurt, will have other active live cultures such as S. thermophilus, L. bacillus delbrueckii subsp. Bulgaricus, L. bacillus delbrueckii subsp, lactis,L. occus lactis subsp. Lactis, L. coccus lactis subsp. Cremoris., etc. Accordingly, based on the technical specification, curd and yogurt can be distinguished.

On the other hand, the marketing campaigns of ‘curd / dahi’ and ‘yogurt’ and consumer preferences will have a role in determination of classification under the common parlance route. The packaging, the common man’s perception of the differences between curd and yogurt and materials accompanying the product all play a role in this process. Various courts have taken different approaches to classification of products, sometimes a common parlance method is preferred5 and in other times the technical meaning 6. The issue of yogurt as curd is likely to go down the path of the courts where the answer to this question will be settled in the future. But until then, the suppliers will still need to grapple with the story of these fermented milk products.

Fruit based carbonated drink - A ‘fruit juice-based drink’ to attract concessional GST rate?

Broadly, non-alcoholic beverages can be categorised into carbonated beverages (also known as aerated/ fizzy drinks) or non-carbonated beverages. In the year 2014, Hon’ble Narendra Modi, the Prime Minister of India, appealed to leading beverage manufacturers of India to blend natural fruit juice in fizzy drinks which will help distressed farmers find a new market place for their agricultural produce. 7 The food regulator also made necessary changes in FSSAI regulations to encourage healthy carbonated drinks. Various fruit-based drinks were launched by domestic and multi- national corporations (MNCs) in the beverage space.

These fruit-based fizzy drinks were manufactured by procuring juice concentrate/pulp (made out of real juice after extraction of water) and mixing sweeteners, preservatives, carbon dioxide and other additives. As these drinks contain aspects from different types of beverages (without being a class in themselves) and the Indian GST classification

has different rate structures for different types of beverages, the classification of these products again poses a huge challenge. The relevant classification entries for these drinks under GST are as follows:

8 9 10 11

These drinks are essentially Indian culinary innovations and the HSN explanatory notes are of little help. The next best option is to make references to various literature on food & beverages and allied laws to determine its classification. According to the FSSAI, the quantity of fruit juice in a FOOD FOR THOUGHT beverage determines the classification of the product as ‘carbonated fruit beverages or fruit drink’. Where Will the form and content of fruit the content of fruit juice added is only the purpose of extracts in carbonated drink determine a flavouring agent in water, it will continue to remain the rate of GST in India? If yes, then why not reduce the rate of GST and sell as ‘flavoured water drink’. Hence, the quantum of fruit drinks at competitive prices by adding in the carbonated drink could push it either towards a higher content of natural fruit extracts. 12% (fruit drink) or a 40% (flavoured aerated water) rate. Interestingly, a similar question arose in the erstwhile regime of VAT and excise. In this12 case, the Supreme Court of India held that commercial nomenclature or trade understanding should be departed where the statutory content in which the tariff entry appears, requires such a departure and applied the principle of ‘noscitur a sociis’13 to determine classification of fruit juice- based drinks along with allied laws.

Regardless, the classification of such drinks continues to pose issues with many of the following factors coming AMAZE YOURSELF into play: There is no straight jacket formula for • type, proportion and purpose of adding any ingredient defining ‘bread’, and the form, nature & in the beverage; types of bread will change with changing times and innovations.

• whether juice prepared out of fruit concentrates will Wikipedia lists approx 200 types of qualify as ‘fruit juice-based drinks’; bread tagged to different origins globally. As per the said list, breads with an India origin include Appam “Hoppers”, Bhakri, • how different beverages are perceived and marketed Dosa, Khakhra, Kulcha, Papad, Paratha/ under common parlance, etc. Parotta, Puran Poli and Roti/ Rumali Roti.

Without a specific entry for such products, the classification is likely to be questioned again and again.

“Bread” - The meaning of ‘bread’ under HSN and its applicability to various Indian breads namely roti, chapatti, tortilla, paratha, thepla, naan, kulcha, etc

Bread is a staple food prepared from dough of cereal flour and water. Various kinds of breads are made depending upon the culinary traditions and eating habits of different countries. Indian breads include roti, chapatti, tortilla, paratha, thepla, naan, kulcha, etc of different shapes and sizes with different additions (spices, herbs, vegetables) to the bread dough. The products are available in frozen, ready to eat, ready to cook packages. Again, the meaning of the word ‘bread’ in HSN has led to several classification disputes. Under GST, the relevant entries for classifying breads are as under:

14 15 16

Whether the dictionary meaning of “bread” includes indigenous bread or not is a question that has been settled in the past. The judicial pronouncements specify that the word ‘bread’ should not be restricted to a single kind of bread. Therefore, ‘bread’ includes indigenous breads (whether leavened or unleavened) such as roti, chapati, paratha, naan, tandoori, etc. and consequently, NIL rate of GST should be applicable on the different forms of bread.

However, the Indian consumers perceive ‘bread’ as a specific bakery product. If we seek to classify various types of ‘bread’ by the “commercial parlance test”, it will result in different conclusions - some breads attracting Nil tax, others attracting 5% tax and yet others attract 18% tax and the taxation department will contend that the specific entry will override the general entry. As we have seen in the case of ‘Whole Wheat Parotta and Malabar Parotta’ before the AAR, the department is likely to deny concessional rates of tax to parotta as not being either bread or roti and in absence of specific classification entry for parotta, impose GST at the full rate of 18%. Similarly, stuffed parathas, herb infused theplas or mixed vegetable (or paneer) rotis - all very popular for food connoisseurs but are likely to pose significant headaches for the food manufacturer.

Issues relating to type of packing and combos

Branded food products and GST rate implications

In many cases, the GST rate and taxability of a product are based on the manner in which a particular product is packed. The branding on the package/ product has implications on the GST rate. A few illustrative GST entries for branded and non-branded Namkeens’ products are as under:

17 18

The term “unit container” is also defined to include package such as tin, can, box, jar, bottle, bag or carton, POINT TO NOTE drum, barrel or canister, etc. designed to hold a pre- • Branded goods put up in unit determined quantity or number of the product, as containers, will attract higher rate of indicated on such package. Here, it is relevant to note GST. that both the conditions i.e., (i) branded goods which are, • Whereas, branded goods sold in loose (ii) put up in unit container, must be satisfied for levying form, or unbranded goods sold in unit GST at the rate of 12%. Thus, the products displayed in containers will attract a lower rate of GST. loose form in branded retail chain or packed in branded package after sale will not attract higher GST rate.

Branded products sold in ‘pre-packed form’ attract higher rate of GST. On the other hand, non-branded NOTE IT DOWN products sold in package form or for that matter, branded Under GST products sold in loose form do not attract higher rate of GST. There is a need for more clarity with regard to the Composite Supply = meaning of ‘branded products’. Is a product ‘branded’ • ≥ 2 taxable supplies of goods or if affixation of the brand is on whole sale packages, (i.e., services or both (+) meaning of unit container) or does it require the brand name to be embossed on the product itself (or on the retail • naturally bundled (+) packs). The GST rate will impact pricing decisions of the • supplied in conjunction with each product and legal declarations on the package. This is other in the ordinary course of again an area of much confusion under the GST regime business (+) especially with regard to food. • one being principal supply.

“Ready-to-eat combo packs” - Essential character of Mixed Supply = the combo packs

Many times, combo packs including more than one kind • ≥ 2 taxable supplies of goods or services or both (+) of food is supplied under a single package at a single price. For example, one compartment of the combo pack may • made in conjunction with each other contain the ‘main course’ (say ‘butter chicken’) while the • for a single price second compartment may contain the ‘complimentary dish’ (say ‘ghee rice’). How does one determine the • does not constitute composite supply classification of such packages - should it be on the basis of weight, content, consumer preference or some other

criteria? This again is not a theoretical example.

Classifying such products requires going beyond mere reading of the descriptions in the GST rate notifications and refer to the general rules for interpretation along with principle of composite supply19 and mixed supply20 under GST laws. The GST laws make a distinction between composite supplies (products that are naturally bundled) and mixed supplies (products that are bundled but the bundling is not natural) - again both these supplies have hugely different GST implications. Where two or more products are put up together for retail sale, being naturally bundled in the ordinary course of business and intended to be consumed together, then the classification of such combo pack can be done based on the product giving the essential characteristic to the set. However, where the products in the set are not naturally bundled and are sold for a single price, then the set should be classified based on the product attracting the highest rate of tax.

In the present example, the first question that arises is whether selling ‘butter chicken with ghee rice’ in India can be considered to be naturally bundled. If the answer is affirmative, then the next question is whether butter chicken being the ‘main course’ of the meal, provides the essential characteristic to the set. If the answer to both these questions is affirmative, the combo set of ‘butter chicken sold with ghee rice’ will be classified under the classification entry where the product ‘butter chicken’ falls. But there is an additional complication in the GST laws. The classification and taxability of ‘butter chicken’ under GST depends upon whether the content of chicken is more than 20% by weight or not. Needless to state, no guidelines have been provided on how to calculate the weight - whether the weight needs to be calculated in hydrated form or on as is basis. Hence, the taxability of combo set under question will be as follows:

21 22

The struggle of classifying such combo sets arises since there are no straight jacket formulae available to determine whether two or more products/ services are naturally bundled or not. Each case must be individually examined keeping in mind the facts of the case and several other factors.

Issues relating to flavoring agents

“Chocolate flavored diabetic food” - Classification as diabetic food or food product containing cocoa

Chocolate flavoring is one of the most common flavorings available in food products. The preferred ingredient for the chocolate flavoring is cocoa powder. The mixing of cocoa, however, poses a major classification issue. This is because when cocoa is in the mix, the question arises whether the concerned food products should be classified as the food

item or ‘food preparation containing cocoa’.

One example of this issue is of a chocolate flavored diabetic food item. The competing entries are as under:

23 24

In diabetic food, cocoa is added as a flavoring agent. Many times, what needs to be examined is whether the essential characteristic of the food is changed due to flavoring agent or not. The literal interpretation for the HSN 1806 will result in different classifications. Here, for the purpose of correct classification and charging appropriate rate of GST, various factors such as composition of the food item, proportion/ purpose of adding cocoa (i.e., high content or minimal amount added for flavoring purposes), brand positioning in the market as a product for persons with diabetics, etc. needs to be considered. Still classification in such cases poses issues.

Although the HSN explanatory notes to Chapter Heading 18 provide that any product containing any amount of cocoa shall be covered in the mentioned heading, food items shall continue to be classified as the respective food item if cocoa is merely used as a flavoring agent in small quantities. Further, the issue of whether adding cocoa as a flavoring agent in multifarious food products will attract higher or lower rate of GST is itself subject to different interpretations. This is again an example of the complex classification issues under the GST regime. chocolate [chaw-kuh-lit] noun

Will the issue of determining correct classification a preparation of the seeds of cocoa, roasted, husked and ground, often under taxation ever settle? having the ability to shrink your clothes and size of wallet by attracting higher We have highlighted a few of the classification challenges rate of tax. faced by the various sectors. Classification remains one of the major contentious areas under GST. To get the classification right, various factors play a part: references will need to be made to various general or sector specific dictionaries, allied laws, instructions given by various sector specific regulators and the several rules for interpretation relating to classification, judge made principles relating to classification and interpretation such as strict or purposive interpretation, internal & external aids of interpretation, principle of pari materia and noscitur a sociis, etc. The marketing and branding of the products also plays a crucial role in determining the

classification. The product positioning in the market and perception among the trade and customer is relied on by the courts in deciding the classification disputes. At the same time, there is huge pressure on businesses to get the lowest GST rate applicable. This has direct impact on pricing, ability to penetrate the market and legal declarations on the package. Competitors breaking away from the industry norms is a source of disruption for rest of the industry. It puts them in a fix as to whether to stay with their current classification or break rank to compete in the market. The misses in this area are costly: apart from additional tax lability, interest and penal consequences are also attracted. With GST being seamless, mistakes at the manufacturer’s end does not remain contained at that level but flows through the entire supply chain leading to tax demands on distributors and contractual disputes with customers. All this means that it becomes imperative for businesses to invest time and effort to determine the product classification correctly and decisively before the launch of any product. |

The authors would like to thank Rinkal Patel, Associate at the firm for her assistance.

L Badri Narayanan is an Executive Partner at the firm. Asish Philip Abraham is a Joint Partner at the firm.

ENDNOTES

1 “GST Rates,” Central Board of Indirect Taxes and Customs, Ministry of Finance, Government of India, accessed January 18, 2021, https://cbic-gst.gov.in/gst-goods-services-rates.html. 2 Central Board of Indirect Taxes and Customs (Product falling under Chapter Heading No. 04.03), Sr. no. 9 in Schedule-I of Notification No. 1/2017-Central Tax (Rate) (as amended from time to time), June 28, 2017. 3 Central Board of Indirect Taxes and Customs (Product falling under Chapter Heading No. 04.03), Sr. no. 26 in Schedule of Notification No. 2/2017-Central Tax (Rate) (as amended from time to time),June 28, 2017. 4 K. T. Achaya, A Historical Dictionary of Indian Food (Oxford University Press, 2001); David A. Bender, A Dictionary of Food and Nutrition, (Oxford University Press, 2009); British Food Manufacturing Industries Research Association et.al., Food Industries Manual, (Blackie Academic & Professional, 1988)). 5 Commissioner of C. Ex., New Delhi v. Connaught Plaza Restaurant (P) Ltd, 286 E.L.T. 321 (2012). 6 Britannia Industries Ltd. v. Collector of Central Excise, Bombay, 26 E.L.T. 628 (Tribunal) (1986); affirmed by the Supreme Court of India, 50 E.L.T. A86 (1990). 7 Reuters and Nikita Garia, “Narendra Modi Asks Pepsi Coke to Blend Furit Juices in Fizz,” Livemint, September 24, 2014, https://www.livemint.com/Politics/jAAeodEGoyeWJhC08JNgTK/Narendra-Modi-asks-Pepsi-Coke-to-blend-fruit- juices-in-fizz.html. 8 Central Board of Indirect Taxes and Customs, Sr. no. 48 in Schedule-II of Notification No. 1/2017-Central Tax (Rate) (as amended from time to time), June 28, 2017. 9 Central Board of Indirect Taxes and Customs, Sr. no. 24A in Schedule-III of Notification No. 1/2017-Central Tax (Rate) (as amended from time to time), June 28, 2017. 10 Central Board of Indirect Taxes and Customs, Sr. no. 12 in Schedule-IV of Notification No. 1/2017-Central Tax (Rate) (as amended from time to time), June 28, 2017. 11 Central Board of Indirect Taxes and Customs, Sr. no. 2 in Notification No. 1/2017- Compensation Cess (Rate) (as

amended from time to time), June 28, 2017. 12 M/s Parle Agro (P) Ltd v. Commissioner of Commercial Taxes, Trivandrum, 2017-VIL-20-SC 13 It means that, the meaning of an unclear word or phrase should be determined by the words immediately surrounding it.. 14 Central Board of Indirect Taxes and Customs, Sr. no. 97 in Schedule of Notification No. 2/2017-Central Tax (Rate) (as amended from time to time), June 28, 2017. 15 Central Board of Indirect Taxes and Customs, Sr. no. 99A in Schedule-I of Notification No. 1/2017-Central Tax (Rate) (as amended from time to time), June 28, 2017. 16 Central Board of Indirect Taxes and Customs, Sr. no. 453 in Schedule-III of Notification No. 1/2017-Central Tax (Rate) (as amended from time to time), June 28, 2017. 17 Central Board of Indirect Taxes and Customs, Sr. no. 101A in Schedule-I of Notification No. 1/2017-Central Tax (Rate) (as amended from time to time), June 28, 2017. 18 Central Board of Indirect Taxes and Customs, Sr. no. 46 in Schedule-II of Notification No. 1/2017-Central Tax (Rate) (as amended from time to time), June 28, 2017. 19 Central Goods and Service Tax Act, Act No. 12 (2017), §2(30). 20 Central Goods and Service Tax Act, Act No. 12 (2017), §2(74). 21 Central Board of Indirect Taxes and Customs, Sr. no. 29 in Schedule-II of Notification No. 1/2017-Central Tax (Rate) (as amended from time to time), June 28, 2017. 22 Central Board of Indirect Taxes and Customs, Sr. no. 23 in Schedule-III of Notification No. 1/2017-Central Tax (Rate) (as amended from time to time), June 28, 2017. 23 Central Board of Indirect Taxes and Customs, Sr. no. 46A in Schedule-II of Notification No. 1/2017-Central Tax (Rate) (as amended from time to time), June 28, 2017. 24 Central Board of Indirect Taxes and Customs, Sr. no. 12C in Schedule-III of Notification No. 1/2017-Central Tax (Rate) (as amended from time to time), June 28, 2017.

NEW DELHI KOLKATA 5 Link Road, Jangpura Extension, 2nd Floor, Kanak Building, New Delhi 110 014 41, Chowringhee Road, PHONE: 011-4129 9800 Kolkata 700 071 --- PHONE: 033-4005 5570 B-6/10, Safdarjung Enclave, E-MAIL: [email protected] New Delhi 110 029 PHONE: 011-4129 9900 CHANDIGARH E-MAIL: [email protected] SCO No. 59, 1st Floor, Sector 26, Madhya Marg, MUMBAI Chandigarh 160 026. 2nd Floor, CNERGY IT Park, Old Standard Mill, PHONE: 0172-492 1700 Appa Saheb Marathe Marg, Prabhadevi, E-MAIL: [email protected] Mumbai 400 025 PHONE: 022-2439 2500 GURUGRAM E-MAIL: [email protected] OS2 & OS3, 5th Floor, Corporate Office Tower, AMBIENCE Island, Sector 25-A, CHENNAI Gurugram 122 001 2, Wallace Garden, 2nd Street, PHONE: 0124-477 1300 Chennai 600 006 E-MAIL: [email protected] PHONE: 044-2833 4700 E-MAIL: [email protected] PRAYAGRAJ (ALLAHABAD) 3/1A/3, (Opp. Auto Sales) BENGALURU Colvin Road, Lohia Marg, World Trade Center, No. 404-406, 4th Floor, Prayagraj 211 001 South Wing, Brigade Gateway Campus, PHONE: 0532-242 1037/242 0359 No. 26/1 Dr. Rajkumar Road, E-MAIL: [email protected] Malleswaram West, Bengaluru 560 055 PHONE: 080-4933 1800 KOCHI E-MAIL: [email protected] 1st Floor, PDR Bhavan, Palliyil Lane, Foreshore Road, Ernakulam, HYDERABAD Kochi 682016 ‘Hastigiri’, 5-9-163, Chapel Road, PHONE: 0484-486 9018/486 7852 Opp. Methodist Church, Nampally, E-MAIL: [email protected] Hyderabad 500 001 PHONE: 040-2323 4924 JAIPUR E-MAIL: [email protected] 2nd Floor (front side), Unique Destination, Tonk Road, Near Laxmi Mandir Cinema Crossing, AHMEDABAD Jaipur, Rajasthan 302015 B-334, SAKAR-VII, PHONE: 0141-4561200 Nehru Bridge Corner, Ashram Road, E-MAIL: [email protected] Ahmedabad 380 009 PHONE: 079-4001 4500 NAGPUR E-MAIL: [email protected] 1st Floor, HRM Design Space, 90-A, Next to Ram Mandir, PUNE Ramnagar, Nagpur 440033 607-609, Nucleus, 1 Church Road, Camp PHONE: +91-712-2959038/2959048 Pune 411 001 E-MAIL: [email protected] PHONE: 020-6680 1900 E-MAIL: [email protected] 14 | LKS - IN FOCUS / MARCH 2021

For more information or feedback, please write to us at [email protected]

IN THIS ISSUE

1. Farm Acts and Agritech: Is the time ripe for the agri sector to bloom? L. Badri Narayanan, Kunal Arora and Sarang Dublish

2. Agritech: A much-needed digital revolution for the agri sector L. Badri Narayanan, Gaurav Dayal and Sarang Dublish

3. Investments in agritech sector: An analysis of the last decade L. Badri Narayanan and Sarang Dublish

4. Seed industry: An overall perspective Noorul Hassan

5. Investor’s outlook on agritech in India: An interview with Omnivore’s Managing Partner Gaurav Dayal

6. Climate change: A catalyst for agritech? Amritha Salian

7. Food business: Regulatory regime in India Kunal Kishore

8. Traversing issues under intellectual property and allied laws vis-a- vis food and agri sector R. Parthasarathy and Vindhya S Mani

9. Parotta or roti? Curd or yogurt? Classifying culinary delights under the Indian GST regime L. Badri Narayanan and Asish Philip Abraham

10. Income-tax incentives for agritech companies S. Vasudevan and S. Sriram

Disclaimer: The information and/or observations contained in this publication has been provided for general information purposes only. It does not constitute legal advice and must not be relied or acted upon in any specific situation without appropriate legal advice. It does not purport to be complete nor to apply to any specific factual situation and does not create an attorney-client relationship with any person or entity. Lakshmikumaran & Sridharan (Firm) and the authors expressly disclaim and do not accept any responsibility for any losses, liabilities or inconvenience that may arise from reliance upon the information contained in this publication or any inaccuracies herein, including changes in the law. The views expressed in this publication do not necessarily constitute the final opinion of the Firm on any of the issues covered herein. For any queries, please contact the Firm at [email protected].

New Delhi • Mumbai • Chennai • Bengaluru • Hyderabad • Ahmedabad • Pune • Kolkata • Chandigarh • Gurugram • Prayagraj • Kochi • Jaipur • Nagpur